KUALA LUMPUR, Aug 7 — The Ministry of Investment, Trade and Industry (MITI) has projected a total of RM104 billion in approved investments for 2025, covering selected manufacturing and services sectors under the purview of the Malaysian Investment Development Authority (MIDA).
In a written parliamentary reply published on the Dewan Rakyat portal today, MITI said the forecast was based on several factors, including Malaysia’s gross domestic product (GDP) outlook, ongoing project evaluations, and potential investment leads.
“Based on MIDA’s investment statistics, approved investments in the first quarter of 2025 amounted to RM89.8 billion, a 3.7% increase compared to the same period in 2024.
“Given the positive trend in investment applications to MIDA, the overall investment momentum is expected to remain strong throughout 2025,” the ministry stated.
MITI was responding to a question from Datuk Dr Ku Abd Rahman Ku Ismail (PN-Kubang Pasu), who had asked about the 2025 investment outlook and the government’s strategies to safeguard export and investment figures amid US tariffs and global geopolitical uncertainty.
No Immediate Revision of Trade Forecast Despite US Tariffs
At present, MITI said the investment projection remains unchanged, noting that the new US tariffs would primarily affect companies heavily reliant on the American market.
The ministry also confirmed that it has no immediate plans to revise its trade growth target for 2025, despite the recent implementation of a 19% retaliatory tariff on Malaysian exports to the US.
“Nonetheless, we are closely monitoring current developments, particularly export trends to the US, and will formulate appropriate mitigation strategies,” MITI added.
Temporary Impact on Trade, Recovery Expected in 2026
Trade performance is expected to face a slight decline in the second half of 2025, attributed to reduced demand from the US market following the enforcement of tariffs.
“A more pronounced impact is anticipated in the first quarter of 2026, when trade activities resume after the full implementation of the tariff,” the ministry explained.
Previously, MITI had projected a 5.0% increase in Malaysia’s total trade for 2025, rising to RM3.01 trillion, up from RM2.87 trillion recorded in 2024.
Strategic Positioning in ASEAN
Commenting on the tariff implications, MITI said President Trump’s recent announcement of the 19% tariff rate presents a strategic opportunity for Malaysia to remain competitive, especially among ASEAN nations facing similar tariff levels.
“It is important to note that Malaysia successfully secured a reduced tariff rate without compromising core national policies or sovereignty,” the ministry stressed.
However, MITI acknowledged that the tariff would still impact export performance and investment inflows, which in turn would affect Malaysia’s overall economic outlook.
— BERNAMA